Digital Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Japan, UK, Germany - Size and Forecast 2024-2028

Digital Marketing Spending Market Forecast 2024-2028 

The Digital Marketing Spending Market size is forecast to increase by USD 353.53 billion, at a CAGR of  8.8% between 2023 and 2028. The market is experiencing rapid growth, fueled by several factors. One key driver is the shift in consumer behavior towards online shopping, leading to increased demand for digital marketing solutions. Additionally, there is widespread digital transformation across various sectors, driving the need for effective digital marketing strategies. Another factor contributing to market growth is the increased accessibility of digital marketing software through mobile devices, enabling businesses to reach their target audience more effectively. Overall, these trends are shaping the future of digital marketing and driving market expansion. The report provides market size, historical data spanning from 2018-2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics and Customer Landscape

The market is propelled by various drivers and trends, including the influence of platforms like TikTok, the prevalence of phishing attacks, and the dominance of social media advertising. The ubiquity of the internet and the shift from Traditional marketing methods to advanced solutions like cloud-based digital marketing software drive spending. The proliferation of mobile phone and innovative advertisement displays contribute, with a focus on Targeting capabilities and Real-time measurement. While large enterprises lead in spending, the rise of small and medium enterprises (SMEs) and trends in the BFSI industry shape the market. Challenges include navigating AI technology and ensuring effective customer engagement. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The shift in consumer behavior toward online shopping is notably driving the market. A primary catalyst in the global market is the significant shift in consumer behavior toward online shopping. This transition has been hastened by various factors, including heightened internet penetration, the widespread adoption of smartphone and other connected devices, and shifts in lifestyle and preferences.

Moreover, as more consumers embrace the convenience and accessibility of online shopping, businesses are compelled to invest in digital marketing strategies to effectively reach and engage with these audiences. E-commerce platforms have seen tremendous growth, providing consumers with a vast array of products and services at their fingertips. The surge in digital payment solutions and streamlined checkout processes has made online transactions smoother and more secure, further encouraging consumers to shop online. Hence, such factors are driving the market growth during the forecast period.

Significant Market Trends

Expansion of voice search optimization and voice-activated advertising is an emerging trend in the market. An emerging trend in the global market is the expansion of voice search optimization and voice-activated advertising, fuelled by the increasing adoption of voice-enabled devices and virtual assistants including Amazon Alexa, Google Assistant, and Apple Siri. In addition, as consumers embrace voice technology for everyday tasks, such as search queries, shopping, and accessing information, businesses are recognizing the need to optimize their digital presence for voice-based interactions.

Moreover, voice search optimization involves optimizing third party websites content, keywords, and structured data to align with natural language queries spoken by users. In addition, by focusing on conversational and long-tail keywords, businesses can improve their chances of appearing in voice search results and capturing voice-enabled traffic. Furthermore, voice-activated advertising presents new opportunities for marketers to engage with consumers through interactive and personalized experiences. Hence, such factors are driving the market growth during the forecast period.

Major Market Challenge

Ad fraud and concerns about brand safety in digital advertising a major challenges hindering market growth. Ad fraud comprises various deceptive practices aimed at artificially inflating ad impressions, clicks, or conversions to generate revenue or disrupt competitors. In addition, these fraudulent activities include click fraud, bot traffic, ad stacking, and domain spoofing, resulting in wasted ad spend and diminished campaign performance for advertisers.

Moreover, brand safety concerns arise from the potential placement of ads alongside inappropriate or harmful content, such as fake news, hate speech, or extremist propaganda. In addition, the unintended association with such content can tarnish a brand's reputation and damage consumer trust, leading to negative repercussions for businesses. Hence, such factors are negatively impacting the market which in turn hinders the market growth during the forecast period.

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Alphabet Inc: The company offers digital marketing solutions such as Google Analytics that provide insights into user demographics, traffic sources, conversion rates, and others.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• AppLovin Corp.
• Coalition Technologies LLC
• Dentsu Group Inc.
• Disruptive Advertising Inc.
• Ignite Visibility LLC
• InMobi Pte. Ltd.
• Meta Platforms Inc.
• Microsoft Corp.
• Oracle Corp.
• Perfect Search Media
• Power Digital Marketing
• RAPP
• Silverback Strategies Inc.
• Thinknow
• Thrive Internet Marketing Agency
• Twitter Inc.
• Verizon Communications Inc.
• WebFX
• L7 Creative

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

 

In today's digital age, digital marketing has become indispensable for businesses seeking to reach their target audience effectively. With the proliferation of websites, apps, and search engines, companies are investing heavily in digital marketing spending to enhance their online presence. Marketing specialists leverage various channels like social media, online video, and digital signage to deliver promotional text message  tailored to the customer journey. From engaging influencer to distributing eBooks and white papers, businesses are diversifying their content choices to captivate consumers across mobile device, smartphones, and other platforms. Amidst the digital landscape, traditional marketing methods are gradually being replaced by innovative digital marketing strategies, driving growth and visibility for products and services.Marketing specialists utilize promotional messaging tailored to the customer journey, targeting audiences across device like computer, phone and tablet. From captivating online videos to strategic search engine marketing and paid social ads, companies aim to drive website traffic and increase engagement. Traditional methods like magazine ads and billboards are complemented by digital tactics such as direct mail and email marketing platforms like Mailchimp.

By Aplication

The mobile device segment is estimated to witness significant growth during the forecast period. Several countries are investing heavily in their IT infrastructure and continuously adopting new technologies to embrace AI technology mainly in small and medium enterprises (SMEs), the BFSI industry. In addition, this is helping companies to keep up with the changing consumer behavior while tapping into the growing market demand within the low-cost brackets. Furthermore, as opposed to desktops, mobile phones are portable. Moreover, desktops are losing their market share to mobile devices in the market because of the increased penetration of the latter in the overall global digital advertising spend.

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The mobile devices segment was the largest segment and was valued at USD 280.25 billion in 2018. In addition, a vital factor influencing the shift from desktops to mobile devices is the increasing popularity of cross-device advertising. Furthermore, leading companies, such as Google, which uses social media advertising via video advertising and short video content, are investing heavily in digital marketing. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.

Which are the Key Regions for the Market?

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APAC is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The APAC region is a key player in the global market, characterized by rapid digitalization, burgeoning internet penetration, and a burgeoning consumer base. In addition, with a diverse landscape encompassing developed economies like Japan, South Korea, Australia, and Singapore, as well as emerging markets such as China, India, and Southeast Asia, APAC presents a wealth of opportunities for digital marketers.

Moreover, the average time spent on social media by the population has grown exponentially. In addition, as the future of programmatic advertising depends on mobile devices, the increase in time spent on mobile devices will have a positive impact on the growth of the market. Furthermore, the increase in urbanization and the rise in the adoption of e-commerce in the region are also important factors driving the growth of the market. Hence, such factors are driving the market growth during the forecast period.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Application Outlook 
  • Mobile devices
  • Desktops
• Type Outlook 
  • Search ads
  • Display ads
  • Social media
  • E-mail marketing
  • Others
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing significant growth, driven by various factors. The rise of digital technologies and the prevalence of social media advertising have transformed marketing strategies. Cloud-based digital marketing software offers cost-effectiveness and greater reach, making it popular for both large enterprises and small to medium enterprises (SMEs). Real-time measurement, targeting capabilities, and data-driven strategies enhance digital marketing services. With emerging trends like short video content, artificial intelligence (AI) technology, and augmented reality (AR), businesses are focusing on customer engagement and brand awareness. Funding rounds and venture capital (VC) funding contribute to the expansion of digital marketing initiatives, with various platforms and tools catering to diverse industries, including BFSI, healthcare, education, and retail. However, security concerns, phishing attacks, and malware injections highlight the importance of safeguarding customer data and securing digital channels.Whether targeting B2B clients or B2C customers, businesses deploy digital communication and inbound marketing to nurture prospects and strengthen relationships. In the digital age, engagement metrics like shares, comments, and direct purchases are key indicators of success, guiding businesses as they navigate the dynamic digital landscape.

Furthermore, as the digital landscape continues to evolve, businesses are exploring innovative approaches such as streaming services, machine learning, and predictive analytics to stay competitive and meet consumer preferences. The market's dynamism is evident in the diversity of digital advertising spend, encompassing search advertising, video advertising, e-commerce advertising, and more. The strategic use of digital channels, coupled with data-driven insights, propels the growth of the market. The sector caters to a diverse range of businesses, including small and medium enterprises (SMEs), leveraging tools such as SMS for communication and making an impact on the BFSI industry. Digital platforms and technologies like MMS and call-backs play a pivotal role, particularly for media & entertainment companies and those in the Entertainment industry. Unique strategies like on-site mobile ringtones and focus on the CRM software segment contribute to the effective allocation of Marketing budgets.

Moreover, the market is witnessing significant growth with the emergence of platforms like TikTok and the increasing prominence of the U.S. digital marketing software market. However, the landscape is not without challenges, as the industry faces threats from social engineering attacks and contends with the evolution of Traditional marketing methods. Despite this, the market benefits from the effectiveness of advertisement displays and offers options for on-premise deployment or utilizing the digital medium. The market thrives on seamless Online connectivity, with platforms like Jixie, while insights from organizations like the World Advertising Research Center (WARC) shape strategies amid the backdrop of Global digital advertising spend. Innovations from companies such as Picklejar, FanVivo, and LS Digital bring forth opportunities, complemented by the role of marketing data infrastructure (MDI) in fostering business transparency.

Market Scope
Report Coverage	Details
Page number	166
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 8.8%
Market Growth 2024-2028	USD 353.53 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	8.3
Regional analysis	APAC, North America, Europe, South America, and the Middle East and Africa
Performing market contribution	APAC at 44%
Key countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Alphabet Inc., AppLovin Corp., Coalition Technologies LLC, Dentsu Group Inc., Disruptive Advertising Inc., Ignite Visibility LLC, InMobi Pte. Ltd., Meta Platforms Inc., Microsoft Corp., Oracle Corp., Perfect Search Media, Power Digital Marketing, RAPP, Silverback Strategies Inc., Thinknow, Thrive Internet Marketing Agency, Twitter Inc., Verizon Communications Inc., WebFX, and L7 Creative
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2028
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market  across APAC, North America, Europe, South America, and the Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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